The CBOE Volatility index VIX, Wall Street's so-called fear gauge, ended down 8.1 per cent at 10.73, its lowest level since February 2007.

The VIX, which tends to rise when volatility increases or the market drops, has been on the decline for months and is well below its historical average of 20, which some see as a sign that investors are ignoring concerns that could derail the rally.

The day's gains were broad and led by cyclical sectors, which outperform in times of economic expansion. Industrial shares jumped 1 per cent while energy shares rose 0.8 per cent. The only S&P 500 sector that fell was healthcare, a defensive group, down 0.1 per cent.

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About 217,000 jobs were added in May, slightly fewer than expected, while the unemployment rate held steady at 6.3 per cent. This was the first time job growth has topped 200,000 for four consecutive months since January 2000.

While the report did not point to spectacular growth, "the main thing is that the world's biggest economy is moving in the right direction and slowly gathering momentum," said Marcus Bullus, trading director of MB Capital.

The Dow Jones industrial average rose 88.17 points or 0.52 per cent, to 16,924.28, the S&P 500 gained 8.98 points or 0.46 per cent, to 1,949.44 and the Nasdaq Composite added 25.17 points or 0.59 per cent, to 4,321.40.

With the day's gains, the S&P 500 marked its sixth record close in the past seven sessions.

For the week, the Dow rose 1.2 per cent, the S&P 500 rose 1.3 per cent and the Nasdaq rose 1.9 per cent.

Mining equipment maker Joy Global Inc jumped 3.9 per cent to $64.11, building on its 6.7 per cent rally on Thursday on the back on strong results, for its biggest weekly gain since August 2012.

Peabody Energy Corp was the biggest per centage decliner on the S&P 500, dropping 1.4 per cent at $16.34 after Goldman Sachs downgraded the stock to "neutral."

Hertz Global Holdings Inc tumbled 9.1 per cent to $27.73. The car rental company said it would restate financial results for the past three years to correct accounting errors.

Novavax Inc was the Nasdaq's most active stock, down 7.9 per cent to $4.17 in heavy volume a day after a public offering of 25 million common shares was priced at a discount to its Thursday close.

Trading volume was around 5.27 billion shares on US exchanges, below last month's average of 5.75 billion, according to data from BATS Global Markets. (Editing by Bernadette Baum)